Questions tagged [utma-ugma]

For questions about UTMA (Uniform Transfer to Minors Act) and UGMA (Uniform Gifts to Minors Act) accounts.

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Why is the fact that the beneficiary has full control over a UTMA account after reaching adulthood commonly considered a disadvantage?

On many "pro/con" lists for UTMA accounts, one of the disadvantages listed is that the beneficiary, after reaching a certain age which varies between states, has full control of the money. ...
Someone's user avatar
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Tax benefit of custodial brokerage account

If my understanding is correct, then the tax benefits of a custodial brokerage account are (in 2023): Sheltering of up to $2200 of unearned income / year Avoid gift taxes on gifts up to $15,000 / ...
Zach's user avatar
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What should I do with a UTMA to help protect eligibility for financial aid?

I have been investing $50 a month into a UTMA for my best-friends son. He is not a blood relative of mine. There is about $10k in the account now. I explicitly chose a UTMA instead of a 529 because of ...
Freiheit's user avatar
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Can Wash sale be claimed in this situation in adults joint account

I had bought some sharers of an sector ETF in my joint account with my spouse. Now those shares (suppose quantity 250) are far below ( let say $40 per) our purchase price( let say $100). I am thinking ...
puzzled's user avatar
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UTMA , annual gift tax limit, same account?

We have one kid and looking at UTMA/UGMA, One person can gift about 15K per year, so a couple can give total $30K. Can this $30 ( or $15+$2k) can go in single UTMA/UGMA account ? or each person ...
puzzled's user avatar
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Reimburse Tax expense using UTMA?

The following story is all in Pennsylvania. In 2018 my daughter received a monetary inheritance, significant amount. It was deposited into a savings account that was made into an UTMA. My daughter ...
Genorge Anaplaszio's user avatar
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1 answer
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Does the custodian get removed from a UTMA Account when the minor is emancipated?

I have a question about the UTMA rules. If the minor (age 19) gets emancipated through marriage, does the original custodian get removed? Or how does emancipation effect the UTMA account?
NYmom's user avatar
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Selling stock as an adult from an old UTMA account - Who gets the check?

I have some stocks that were purchased under a UTMA sometime in the mid-90s when I was a teenager. My mother is still listed as the custodian on the account. I want to sell these shares. The stock ...
Freiheit's user avatar
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UTMA life insurance money

Uniform Transfers to Minors Act states (Section 14, paragraph a): A custodian may deliver or pay to the minor or expend for the minor's benefit so much of the custodial property as the custodian ...
William LeRoy's user avatar
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1 answer
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How to avoid Kiddie Tax on UTMA account with bad fees

My father-in-law opened a mutual fund UTMA for my two kids when they were little and has made periodic contributions over the years. They're high school and college now. Each account has about $10k in ...
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Lookback period for UTMA expenses

Can I use a UTMA to pay for elementary and high school education for a child in prior years? How far would the "look back" be? I've incurred $5600 in the past 4 years, and a total of about 25K in ...
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Uniform Gift to Minors Act - Which parent has tax implications?

I am looking to start a college savings fund for my daughter and am debating between the 529 and UGMA. I want to be able to save for her and if her grandparents pay for her college (very possible) or ...
user1723699's user avatar
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Fund choices for UTMA/UGMA accounts

My children received significant gifts from grandparents, both to be their college fund and also nest eggs/etc. if they don't go to college for some reason or post-college. The gifts are in UTMA ...
Joe's user avatar
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How can I gift mutual funds to my 1 year old nephew?

My nephew is getting ready to turn 1 year old and I would like to gift him mutual funds. Are there any special types of accounts out there to allow this sort of gifting? I'm not looking to set up a ...
Ivan Lesko's user avatar
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3 answers
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Can I gift money out of a UTMA account to my child's sibling?

My Father gifted $50,000 to my daughter over a 5 year period. This money is in a UGMA account on my daughter's behalf. I now have three children. My father's intent was to provide for all of my ...
Sam taxpayer's user avatar
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2 answers
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Do my kids need to file a tax return?

My kids (minors) each received a gift of some stock from my wife's parents last year. The stock is in the kids' names, with my wife listed as the custodian. They each made just slightly over $100 in ...
Ben Miller's user avatar
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Want to put at least $500/yr away for my niece, but NOT for education. Choices?

I would like to put money away for my niece. I'm looking to put it somewhere that she can use the money when she turns 18/21. Also, I don't want it to be tied to education, in case she would like to ...
David Pantalaeno's user avatar
3 votes
1 answer
111 views

Is there a standard or best practice way to handle money from an expiring UTMA account?

I have recently turned 21, and the UTMA account that held my college fund is being turned over to me. I have no serious experience with personal finance or investing, and I just don't know what to do ...
Mystagogue's user avatar
3 votes
1 answer
447 views

Where to find actual legal code for Uniform Gifts to Minors Act (UGMA)?

Does anyone know where I can find the actual legal code for UGMA in Texas and the US? I can only find a bunch of sites that quote bits and pieces of the code. I couldn't find anything in the Texas ...
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